A record-setting quarter affirms Spectur Limited (ASX: SP3) growth metrics as it continues to send shockwaves on the development of high definition security camera powered by the Internet of Things. Earnings for the three months ended June 2019 affirm a company on its way to become a key a player in the video surveillance market. Ongoing sales and recurring revenue growth signal the company’s growing market share in a market poised to reach $62.62 billion by 2023.
Record Quarterly Earnings
Spectur transition from an industrial startup to a leading tech company is gaining traction as depicted by solid fourth quarter results. A 23% year-over-year growth in revenue to $1.45 million marks an important milestone. The growth led the company to full-year revenue of more than $4.8 million, above market expectations.
Robust revenue growth saw Spectur post two consecutive months of positive cash flow. The company had $2.16 million as cash at a bank as of July 8, 2019. The current cash balance supplemented by a new capital raise should allow Spectur to implement its growth strategy going forward.
Revenue growth received a boost on customers buying surveillance solutions rather than renting them. Unit sales topped record highs of more than 1,000 as rentals came in the excess of 200 units. Conversely, outright sales triggered a spike in paid subscriptions as well as serve access.
Recurring revenues as a result of growth in subscriptions topped $592,000. Going forward, upfront sales of new unit sales are likely to dominate the overall revenues. Management is also projecting higher gross margin and more recurring revenues as focus shifts to servicing government and utility customers. Plans are also underway to service customers outside Australia especially in New Zealand.
“Spectur continues to build revenue and its brand. With the strengthening of our management team, continued progress towards becoming cash flow positive from operations and a compelling, practical strategy, Spectur is well placed to grow and deliver on our promise,” says Spectur Chairman Darren Cooper.
Growing Video Surveillance Empire
The future can only be bright for Spectur in the multi-billion video surveillance industry. Management is already looking into the future as part of an effort of expanding the company’s footprint and push for market share. Geographic expansion in Australia is already in play in addition to the creation of new outbound sales channels.
The company is also increasingly looking to expand its current customer mix in a bid to diversify revenue streams. Product line expansion while leveraging Internet of Things is top on the agenda as management continues to bolster Spectur competitive edge.
In a bid to shrug off competition in the video surveillance business, Spectur has resorted to making video monitoring and surveillance a lot smarter. With the help of the internet of things, the company is already offering security and surveillance systems connected to cloud-based technology solutions.
Spectur should continue to enjoy an excellent run on revenue generation and market traction on being the only supplier of solar-powered deterrence and surveillance solutions in Australia. The company’s product mix is currently made up of thermal security cameras as well as HD5 solar security camera systems and time-lapse camera systems.